WASHINGTON — Honolulu Mayor Mufi Hannemann told a Senate panel yesterday that the city and county of Honolulu cannot afford to implement a new program setting national standards for driver's licenses without federal funding.

The new program requires driver's license agencies — in most cases states, but counties in Hawai'i — to issue more secure licenses to thwart terrorism and protect against identity theft.

The Real ID law calls for agencies to begin issuing the new licenses no later than the end of 2009 and cover all drivers by 2013.

Applicants would be required to present documents to prove their identity. Motor vehicle agencies would have to verify the information.

Hannemann told a Senate Homeland Security and Governmental Affairs subcommittee that the one-time cost to implement the system would be $7.67 million and the ongoing expenses during the first five years of the program would cost an estimated $25.55 million.

"We ask that these costs be borne by the federal government," Hannemann said.

Even with federal help, Hannemann said, the time limits for implementing the program and the required electronic verification systems "will place an enormous burden on the driver licensing staff and be a tremendous inconvenience to the public."

But Richard C. Barth, assistant secretary for policy in the Department of Homeland Security, said his agency views the Real ID program as "one of the linchpins of our entire national security strategy."

"If we cannot verify that people are who they say they are and if we allow loopholes in obtaining driver's licenses and identification (cards) to exist, the Department of Homeland Security's job and that of law enforcement becomes exponentially more difficult," he said.

Barth said that while issuing the new licenses will present challenges, "it will not be unduly inconvenient" for people who are organized and have their birth certificate, Social Security card and marriage certificate all in one place.

"To be frank, we think spending a little more time at the (local) department of motor vehicles is a price worth paying to enhance our security," Barth said.

Sen. Daniel Akaka, D-Hawai'i, the subcommittee chairman, said Hawai'i isn't alone in having problems with the program.

"From its inception, Real ID has been controversial and criticized by both ends of the political spectrum," said Akaka, sponsor of a bill amending the current law to require negotiation with the agencies issuing the licenses and creating more realistic guidelines.

"The (current) act places a significant unfunded mandate on states and poses a real threat to privacy and civil liberties," he added.

Two states — Maine and Idaho — have passed legislation opting out of complying with the new program.

In Hawai'i, the state Senate passed a resolution calling for the repeal of Real ID provisions that "violate the rights and liberties" guaranteed by the state and U.S. constitutions and create unfunded mandates for the state, Akaka said.

Sen. George Voinovich of Ohio, the top Republican on the subcommittee, said he was concerned about the cost to states and the availability of electronic systems to verify documents.

The Department of Homeland Security estimates complying with the new program will cost states more than $14 billion, with most costs in the first five years, said Voinovich, a former Ohio governor.

"My concerns should not suggest that I am opposed to Real ID," he said. "Rather, I want to be sure that as we move forward with the implementation, we are honest about the true cost of compliance."

Reach Dennis Camire at dcamire@gns.gannett.com.